Covid related reporting on W2’s in GrowPoint

If you have had employees to whom you had paid Sick or Family Leave under the FFCRA rules, the government released information last summer on how that information should be given to employees. If you have followed the recommendations, we set forth to separate the Sick and Family Leave into 2 different Leave earnings types in GrowPoint, you will be able to report that information on the W2 in Box 14. Otherwise, they ask that you include a separate statement of those wages in with the paper W2 given to employees. See the IRS guidelines here.

The W2 Instructions for 2020 however, do not include these instructions for Box 14 that were released last July. We have programmed the GrowPoint W2 to include them. We will leave it to you and your accountant as to how or if you want to report your FFCRA leave to your employees.

How to Report Qualified Sick Leave on the W2

The qualified sick leave wages paid to the employee should be included in Boxes 1, 3 (up to the social security wage base), and 5 of Form W-2 as regular wages would, but the employer must also report to the employee the following type and amount of the wages that were paid, with each amount separately reported either in Box 14 of Form W-2 or on a separate statement:

• the total amount of qualified sick leave wages paid for reasons described in paragraphs (1), (2), or (3) of section 5102(a) of the Emergency Paid Sick Leave Act (EPSLA); in labeling this amount, the employer must use the following, or similar, language: “sick leave wages subject to the $511 per day limit;” and

• the total amount of qualified sick leave wages paid for reasons described in paragraphs (4), (5), or (6) of section 5102(a) of the EPSLA; in labeling this amount, the employer must use the following or similar language: “sick leave wages subject to the $200 per day limit.”

If a separate statement is provided and the employee receives a paper Form W-2, then the statement must be included with the Form W-2 provided to the employee. GrowPoint is programmed to include “Sick $200 Limit” or “Sick $511 Limit” as a description for Box 14 codes that you designate for your associated earnings type when running the W2.

If you did not create a different earnings type for Sick Leave with a $200 limit and another with the $511 limit, AND you had both situations but you only collected the information under one earnings type – then you may need our help in separating those wages into 2 different ones. We won’t walk through those instructions now but will support that situation individually with each customer that encounters it. Please email support@advgrower.com if you do.

How to Report Qualified Family Leave on the W2

The qualified family leave wages paid to the employee should be included in Boxes 1, 3 (up to the social security wage base), and 5 of Form W-2 as regular wages would, but the employer must also report to the employee the total amount of qualified family leave wages paid to the employee under the Emergency Family and Medical Leave Expansion Act (EFMLEA) either in Box 14 of Form W-2 or on a separate statement. In labeling this amount, the employer must use the following, or similar, language: “emergency family leave wages”.

If a separate statement is provided and the employee receives a paper Form W-2, then the statement must be included with the Form W-2 sent to the employee. GrowPoint is programmed to include “ER Family Leave” as a description for Box 14 codes that you designate for your associated earnings type when running the W2.

How to Add the Leave Earnings Types to Box 14 in GrowPoint

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